Mazagon Dock, BEL, Bharat Dynamics: How to trade these 3 buzzing defence stocks

Indian benchmark indices posted big gains on Wednesday on the back of positive global cues, including expectations of rate cuts by the US Federal Reserve. Anticipation of ending the Russia-Ukraine war also supported the sentiments. BSE Sensex zoomed 1,022.50 points, or 1.21 per cent, to settle at 85,609.51, while NSE's Nifty50 surged 320.60 points, or 1.24 per cent, to close at 26,205.30 for the day.
 

Select buzzing defence stocks including Bharat Electronics (BEL), Bharat Dynamics (BDL) and Mazagon Dock Shipbuilders are likely to remain under the spotlight of traders for the session today. Here is what Hitesh Tailor, Research Analyst at Choice Broking has to say about these stocks ahead of Thursday's trading session:
 

Bharat Dynamics | Buy | Target Price: Rs 1,650 | Stop Loss: Rs 1,400

BDL maintains a higher-high and higher-low structure in the long-term trend, confirming sustained bullish momentum. The stock has witnessed a healthy retracement after hitting an all-time high, allowing consolidation before potential continuation of the broader uptrend. On the downside, long-term investors may look to accumulate on dips for long-term consideration. In the short term, BDL has given a range breakout and successfully retested the Rs 1,520 zone but is trading slightly below it. A decisive breakout and sustained move above Rs 1,520 may trigger further upside towards Rs 1,650. Short-term traders may consider buying near current levels with a strict stop loss at Rs 1,400 for a target of Rs 1,650, while adhering to disciplined risk management.
 

Mazagon Dock Shipbuilders | Buy | Target Price: Rs 2,970 | Stop Loss: Rs 2,550

Mazagon Dock continues to maintain a higher-high and higher-low structure on the long-term trend, confirming its broader bullish outlook. On the downside, strong support is visible near Rs 2,600, where accumulation is evident, making it a favourable zone for long-term investors to consider adding on dips. In the short term, the stock is forming a descending triangle pattern, aligned with the 200-day EMA and trendline resistance. A breakout and sustained move above this level may indicate continuation of the uptrend and open the way towards Rs 2,970. RSI is placed at 42.80 and has bounced from oversold territory, signalling improving momentum. Short-term traders may consider buying at current levels with a stop loss at Rs 2,550 for a target of Rs 2,970, while following strict risk management.
 

Bharat Electronics | Buy | Target Price: Rs 450 | Stop Loss: Rs 390

BEL is moving sideways within a narrow range of Rs 400–432 over the past few weeks, indicating neutral market sentiment with no strong short-term directional bias. The RSI is at 49.9 and trending upward, signalling a gradual improvement in momentum. On the positive side, the stock has taken support at its 20-week EMA and continues to trade above its 50-day and 200-day EMAs, indicating sustained medium- to long-term strength. Given the current setup, traders may consider initiating long positions near Rs 415.30 with a strict stop-loss at Rs 390 to manage risk. However, waiting for clear confirmation near key support or resistance levels is crucial before taking strong directional trades within this consolidation phase.